PADA: Lifetime annuity most likely decumulation option

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A lifetime annuity or trivial commutation is likely to be the most appropriate decumulation option for personal accounts members, PADA says.

The Personal Accounts Delivery Authority published responses to its consultation on decumulation - Building Personal Accounts: Securing a Retirement Income - today. It said there was also general acknowledgement that a panel of providers approach could be the most appropriate route for members not wishing to exercise the open market option. And it said respondents recognised fund sizes were likely to be very small in the early years - something they said could present a number of challenges to the scheme and the wider retirement income market Respondents also agreed on the need to use a...

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